Dealership Group May Have to Refund Car Buyers $75 Million Due to Alleged Predatory Pricing

The Federal Trade Commission (FTC) and the Maryland attorney general have taken action against Lindsay Automotive Group, as the two governmental agencies announced on Tuesday, with officials saying customers were misled into paying thousands more than expected for their vehicles and vehicle-related add-ons. The dealership group was ordered to pay a $3.1 million civil penalty; it will also issue customer refunds that could total more than $75 million.

The Lindsay Auto Group operates dealerships under the names Lindsay Chevrolet of Woodbridge, Lindsay Ford of Wheaton and Lindsay Chrysler-Dodge-Jeep-Ram. At the risk of sounding like a late-night lawyer commercial, if you purchased a vehicle from any of those locations from April 1, 2020, and December 31, 2025, you may be eligible for compensation. Authorities allege that these dealerships would falsely advertise low prices; they are also accused of charging customers for additional add-ons, such as tire and rim protection and GAP insurance, without the customer agreeing to buy.

The complaint was originally filed in December of 2024. The three dealerships were named in the complaint as defendants; also named as defendants was their management company, along with the company’s part-owner and president Michael Lindsay, COO John Smallwood, and the dealerships’ former general manager, Paul Smyth.

Allegedly, the Lindsey Auto Group would advertise temptingly low prices; however, once customers were in the showroom, they would be told that they didn’t qualify for the rebates that were included as part of the advertised price. In addition, the dealership group allegedly told buyers they had to obtain financing through the dealership; this included members of the military who already had financing arranged through their military branch’s credit union.

“Lindsay Auto misled consumers by advertising false low car prices and then adding mandatory fees and other charges during the car buying process,” said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection.

Lindsay Auto has been ordered to pay a $3.1 million civil penalty to the Maryland Attorney General’s office. However, that pales in comparison to what they may need to refund to customers. Officials estimate that, over the course of about five and a half years, customers were inappropriately charged a total of more than $75 million for their vehicles and add-ons. The FTC and Maryland Attorney General want this money refunded to the customers, and it has been so ordered by the United States District Court for the Eastern District of Virginia.

Beyond the financial penalties, authorities also say Lindsay Auto must change the way they do business. According to the proposed order, it “prohibits specific misrepresentations in connection with advertising, marketing, promoting, offering for sale, financing, leasing, or selling motor vehicles, including misrepresentations about whether vehicles are available at the advertised prices, and whether any type or source of financing is required, including to buy a vehicle or to get a particular price or other terms.” Lindsay Auto must “clearly and conspicuously” disclose the total cost of a vehicle excluding only required government charges, and vehicle-related fees need to be consented to by the consumer before being charged.

The Maryland Attorney General’s Office will begin notifying customers who may be eligible for a refund. Recipients can check their eligibility by answering a few questions included in the notice and sending it back to the claims administrator.